Melbourne auction results suggest market upturn
Low interest rates and favourable market conditions seem to be having an effect on Melbourne property buyers, with the weekend's auction results showing increasing confidence in the sector.
According to Real Estate Institute of Victoria (REIV) data, 695 residential properties were auctioned over the weekend (October 20 - 21), recording a clearance rate of 62 per cent.
The auction results trump last weekend's clearance rate of 60 per cent, and 53 per cent for the same period the year before, indicating consumer sentiment is growing as economic conditions become more promising for buyers and sellers alike.
Just under 460 houses went under the hammer during the weekend, with a clearance rate of 63 per cent.
In comparison, just 211 flats and apartments were auctioned, recording a clearance rate of 64 per cent.
While the market appears to be heading for an upturn, the effects of the latest interest rate cut are likely to be seen next weekend (October 27-28) when more than 1,000 dwellings will go to auction across the city.
"A significant test for the market will occur next weekend when around 1,200 auctions are expected, the highest number for a weekend since December in 2010," REIV chief executive officer Enzo Raimondo said.